Canadian home sales rose 6.6% in July compared to same time last year

A total of 45,973 homes changed hands last month, up from 43,122 in July 2024.

Home sales rose 3.8 per cent on a month-over-month basis from June, with transactions up a cumulative 11.

2 per cent since March.

With sales posting a fourth consecutive increase in July, and almost four per cent at that, the long-anticipated post-inflation crisis pickup in housing seems to have finally arrived, said CREA senior economist Shaun Cathcart in a news release.

Looking ahead a little bit, it will be interesting to see how buyers react to the burst of new supply that typically shows up in the first half of September.

The association said the bump in sales activity was led overwhelmingly by the Greater Toronto Area, where transactions have now rebounded by a cumulative 35.5 per cent since March.

Source: Canadian Real Estate Association Photo: CBC

TD economist Rishi Sondhi said pent-up demand temporarily sidelined earlier in the year returned to markets with some force last month.

Indeed, it looks as though the sales recovery that should have happened earlier in the year after significant (interest) rate relief in 2024 was simply delayed some months, he said in a note.

Some reduction in economic uncertainty should bring back more buyers in B.C. and Ontario, while further Bank of Canada rate relief could offer modest stimulus in the back half of the year. However, barriers remain, such as stretched affordability in several provinces and a weaker job market.

Housing market ‘stable’ through summer: economist

Meanwhile, new listings were up 0.1 per cent month-over-month.

There were 202,500 properties listed for sale across Canada at the end of July, up 10.1 per cent from a year earlier and in line with the long-term average for that time of the year.

The non-seasonally adjusted national average sale price of a home sold in July was $672,784, up 0.6 per cent from a year ago.

CREA’s own home price index, which aims to represent the sale of typical homes, was unchanged between June and July 2025.

BMO senior economist Robert Kavcic said the housing market has looked very balanced and stable through the summer, with significant regional variation persisting.

At the national level, sales have steadily climbed back toward longer-term norms, inventory is elevated but not overly saturating the market, and prices are effectively flat, he said in a note.

In markets where price corrections are ongoing, we seem to be getting closer to levels that are bringing some buyers off the sidelines.

This article is republished from RCI.